InSight

Exit and Growth Strategies for Middle Market Businesses

Archive for the ‘Plastics/Rubber’ Category

M&A Quarterly News In The Plastics and Rubber Industry Sector

By Jim Zipursky | Sep 12, 2019

The report below gives a good overview of the third quarter M&A activity in the Plastics and Rubber Industry Sector. M&A activity for North American based target companies in the Plastics and Rubber sector for Q2 2019 included 24 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector was announced in May when EPTAM Precision, a subsidiary of EPTAM Plastics Ltd. and a portfolio company of New Heritage Capital LLC, acquired Micro Molding, Inc. for an undisclosed amount. The transaction also includes MedConnection LLC. Micro Molding is located in Phillipsburg, New Jersey and manufactures precision plastic injection components specializing in precision injection molding, catheter tipping, finishing and assembly.

Read more »


M&A Quarterly News In The Plastics and Rubber Industry Sector

By Jim Zipursky | Jun 17, 2019

The report below gives a good overview of the second quarter M&A activity in the Plastics and Rubber Industry Sector. M&A activity for North American based target companies in the Plastics and Rubber sector for Q1 2019 included 27 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in March when One Rock Capital Partners LLC acquired the assets related to the Process Solutions Business of Newell Brands, Inc. for US$500 million. The transaction includes Plastic Solutions, Consumer Table top, Zinc Products and Applied Materials. The acquired business is involved in manufacturing plastic products. The transaction was subject to customary closing conditions, including regulatory approvals.

Read more »


M&A Quarterly News In The Plastics and Rubber Industry Sector

By Jim Zipursky | Mar 20, 2019

The report below gives a good overview of the first quarter M&A activity in the Plastics and Rubber Industry Sector. M&A activity for North American based target companies in the Plastic and Rubber sector for Q4 2018 included 25 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in November when VisiPak, Inc., a subsidiary of Sinclair & Rush Inc, acquired Masterpac Corp for an undisclosed amount. The transaction allows VisiPak to enter into the medical packaging business and strengthen its product offerings in the consumer and industrial packaging market. Masterpac Corp is located in St. Louis, Missouri and manufactures thermoformed finished plastics products.

Read more »


M&A News In The Plastics and Rubber Industry Sector

By Jim Zipursky | Nov 19, 2018

The report below gives a good overview of the fourth quarter M&A activity in the Plastics and Rubber Industry Sector. M&A activity for North American based target companies in the Plastics and Rubber sector for Q3 2018 included 25 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in July when Mueller Industries, Inc. acquired ATCO Rubber Products, Inc. for US$163.4 million in cash and contingent payout. The acquisition would allow Mueller Industries to expand its climate products businesses. ATCO Rubber Products is located in Fort Worth, Texas manufactures flex duct systems for residential and commercial heating, ventilation and AC applications. It generated revenue of US$166 million for the fiscal year ended December 31, 2017 and has 800 employees.

End-use markets continue to grow year over year as more products in the U.S. are manufactured out of plastic and rubber materials.

Read more »


M&A News In The Plastics and Rubber Industry Sector

By Jim Zipursky | Aug 17, 2018

The report below provides a good overview of the third quarter M&A activity in the Plastics and Rubber Industry Sector. M&A activity for North American based target companies in the Plastics and Rubber sector for Q2 2018 included 35 closed deals, according to data published by industry data tracker FactSet.
One of the notable middle market transactions was announced in June when a private group led by the management of Comar, LLC and Morgan Stanley Capital Partners (Private Equity) acquired Comar from Graham Partners, Inc., for an undisclosed amount. Founded in 1949, Comar is located in Voorhees, New Jersey and manufactures plastic bottles and other plastic products.

Injection molders across the US have differentiated themselves by specializing in specific processes. Highly specialized firms can be more attractive acquisition targets for larger companies looking to improve capabilities.

Read more »


M&A News In The Plastics and Rubber Industry Sector

By Jim Zipursky | May 21, 2018

The report below provides a good overview of the second quarter M&A activity in the Plastics and Rubber Industry Sector. M&A activity for North American based target companies in the Plastics and Rubber sector for Q1 2018 included 18 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in March when Huntsman Corp acquired Demilec (USA), Inc., a portfolio company of Sun Capital Partners Inc, for US$350 million in cash, subject to adjustments. Huntsman Corp. manufactures chemicals for the plastics, automotive and construction industries. Demilec engages in the manufacture of spray polyurethane foam insulation and coatings. The firm offers products such as demilec APX, sealection 500, pour-in-place, agribalance, heatlok soy, barnseal, geolok, and eco-pur pour-in-place. It also provides a range of products to meet the needs of homeowners, building professionals, architects and insulation contractors.

Worldwide tire sales, a major indicator of rubber usage, are forecast to grow 7% annually to reach a value of about $260 billion by 2019, according to the Freedonia Group.
Read more »


M&A News In The Plastics and Rubber Industry Sector

By Jim Zipursky | Mar 22, 2018

The report below provides a good overview of the first quarter M&A activity in the Plastics and Rubber Industry Sector. M&A activity for North American based target companies in the Plastics and Rubber sector for Q4 2017 included 21 closed deals, according to data published by industry data tracker FactSet.
One of the notable transactions of the quarter closed in October when Genstar Capital, LLC acquired Tekni Plex, Inc., a portfolio company of American Securities, LLC, for a reported value approximately US$1.5 billion. Tekni-Plex manufactures and sells packaging, packaging products and materials, and tubing products primarily for the food and beverage, healthcare, specialty, lawn and garden and consumer markets. The company was founded in 1967 and is headquartered in Wayne, PA.

Rubber and plastic continue to Be major components for a wide range of commercial and industrial products.

Read more »


M&A News In The Plastics and Rubber Industry Sector

By Jim Zipursky | Nov 20, 2017

Sell your Plastic BusinessThe report below provides a good overview of the fourth quarter M&A activity in the Plastics and Rubber Industry Sector. M&A activity for North American based target companies in the Plastics and Rubber sector for Q3 2017 included 18 closed deals, according to data published by industry data tracker FactSet.

Plastics manufacturers that serve the retail sector have seen steady growth with online retailers, according to Plastics News. Nonstore retail, which primarily includes online retailers such as Amazon, saw sales growth of nearly 11% in the first four months of 2017. While online sales are expected to continue to drive demand for foam packing peanuts and bubble wrap, nonstore retail should also spur demand for specialized durable and reusable plastic shipping containers.

Demand for plastics and rubber in the manufacturing sector has been a guy driver for sector growth throughout 2017.

Read more »


M&A News In The Plastics and Rubber Industry Sector

By Jim Zipursky | Oct 09, 2017

The report below provides a good overview of the 3rd Quarter M&A activity in the Plastics and Rubber Industry Sector. M&A activity for North American based target companies in the Plastics and Rubber sector for Q2 2017 included 24 closed deals, according to data published by industry data tracker FactSet. The average purchase price was $73million.

The high-performance tire sector has been among the fastest-growing parts of the tire market. According to a recent report from Smithers Rapra, The Future of High-Performance Tires to 2022, the high-performance tire market will grow at 6.3 percent year-on-year through to 2022 reaching a market value of $74.7 billion, up from $54.9 billion in 2017.

Read more »


Plastics & Rubber Industry | M&A News

By Jim Zipursky | Mar 23, 2017

plastics & rubberPrivate equity has been in the plastics & rubber products space. In November 2016 AEA Investors LP acquired TricorBraun Holdings Inc, a portfolio company of Goldman Sachs Mezzanine Partners and CHS Capital LLC, for an undisclosed amount in cash. The transaction was funded through US$735 million senior secured credit facility provided by the Antares Capital LP. TricorBraun Holdings operates as a holding company with interests in plastic packaging solutions. It supplies rigid packaging and related components for the personal care, cosmetics, healthcare, food and beverage, industrial and household chemical markets.

Production overcapacity, weak demand, and pressure from imports have contributed to slow growth in the US PET (polyethylene terephthalate) plastic blow molded packaging market, according to industry experts cited by Plastics News in November 2016. Even as the US industry has consolidated over the last few years, overcapacity persists, which has caused PET producers to reduce prices as they compete for market share and to cut costs in an effort to preserve margins. Industry watchers suggest that PET converters’ cost-cutting efforts have come at the expense of product innovation investment, as some producers have reduced engineering staffs. Manufacturers also face competitive pressure from imports, as well as alternative packaging products, including paper and stand-up pouches, that have innovated in marketing and product design. Soft drink and water packaging remain steady markets for PET converters, but dairy and juice markets are flat. Food offers an opportunity for growth, but further hot-fill and barrier (oxygen, moisture, UV light) innovation is needed. Other growth markets include dairy substitutes (almond and soy milk), and sports drinks. One upside for PET converters is that low oil prices are likely to keep resin feedstock prices in check.

Industry Indicators
  • US nondurable goods manufacturers’ shipments of chemical products, an indicator of demand for plastic resin and synthetic fibers, rose 2.0% year-to-date in November 2016 compared to the same period in 2015.
  • The spot price of crude oil, a key raw material in plastic resin and synthetic fiber manufacturing, rose 50.3% in the week ending January 13, 2017, compared to the same week in 2016.

Posted by Jim Zipursky.

Read the Entire Plastics & Rubber 1st Quarter Newsletter Here